10 Questions to Ask Your Lender

Be sure you find a loan that fits your needs with these comprehensive questions.

• 1. What are the most popular mortgage loans you offer?
• 2. Which type of mortgage plan do you think would be best for us? Why?
• 3. Are your rates, terms, fees, and closing costs negotiable?
• 4. Will I have to buy private mortgage insurance? If so how much will it cost and how long will it be required? NOTE: Private mortgage insurance usually is required if you make less than a 20 percent down payment, but most lenders will let you discontinue the policy when you've acquired a certain amount of equity by paying down the loan.
• 5. Who will service the loan? Your bank or another company?
• 6. What escrow requirements do you have?
• 7. How long is your loan lock-in period (the time that the quoted interest rate will be honored)? Will I be able to obtain a lower rate if they drop during this period?
• 8. How long will the loan approval process take?
• 9. How long will it take to close the loan?
• 10. Are there any charges or penalties for prepaying the loan?

Used with permission from Real Estate Checklists & Systems (http://www.realestatechecklists.com/).

Reprinted from REALTOR^® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS^®